IRS Announces 2016 Qualified Plan Limits

The IRS has released its updated qualified plan limits for 2016. Little has changed that would affect a qualified plan this time around. Some of the key limits remain as follows for 2016:

  • The compensation limit remains $265,000.
  • The deferral limit for 401(k), 457(b), and 403(b) plans remains unchanged, at $18,000.
  • Age 50 catch-up remains $6,000.
  • The limitation used for defining highly-compensated employees remains $120,000.